Another reason to not use ebay advertising - returns they do not credit the ad fees.
I stopped using ad when I realized if I gave a refund they do not credit the ad fees. This was several months ago and I stopped all my ad campaigns but I doubt this has changes.
For my sales ebay takes 13% this includes shipping and I believe even sales taxes. If you include advertising the percentage increase. Of course now you can pay by click. Buyers click on you listing an see all the competitors listing right on the same page. Of course you might have a good response rate if you have a low margin but then you can not afford ebay ad fees.
So it is very difficult to get a good response rate .
4 comments
rosachs
·2 years agoI might be a bit out-of-touch here, but do print magazine/newspapers, radio stations, or TV networks refund your ad fees if a buyer returns something they bought because of the ad you ran on their venue? I think the fact that eBay does refund fees with refunds is what confuzzles the line between Business and Personal. All the businesses I've worked with over the years have known, and accepted as a true cost of business, that just because you refunded the customer does not mean every vendor you used has to refund you for anything you spent with them for that transaction.
The ad fee was to stimulate the purchase... does USPS refund the postage you paid when a customer returns something? If so, please tell me how because that would make my boss a lot happier about some of the refunds we do.
Must just be me......
-Bob.
wastingtime101
·2 years agoMy ad fees are always credited when I refund buyers on cancellations and returns. It's usually pretty quick (within 10 min), but I have experienced on numerous occasions where the credit was delayed by 2 or even 4 weeks.
How did you process the refund @bernie301 ? Did you use "send refund" or did you refund through a return, cancellation or non-receipt claim?
kenneth686321
·2 years agoEbay credits your final value fees back to you just before you issue your refund. But Ebay will also credit your PLS ad fees to your account like 5-10min later.
Example
You refund a buyer $100 (price + shipping + 0% Tax) to make things simple. Ebay charged 13.25% +$0.30 or $13.25 +$0.30 FVF and you spend 5% or $5 in PLS ad fee. Here is how the accounting would look.
Total Buyer Refund amount -$100
Ebay FVF Credit +$13.55
Total Refund you owe to buyer - $86.45 This is the amount taken from your available funds and/or your bank account
Transaction 1: - $86.45 Refund for order number 1234
Transaction 2: +$5.00 Ad Fee Credit for order number 1234 to be used to pay selling fees from another order or deposited into your bank account if there are no orders.
In reality, the refund would have cost you - $81.45
DO NOT use pay per click ad fees. that is just a waste of money
stainlessenginecovers
·2 years agoFor the possible 1-2% of the time a typical seller has to 'refund' vs the possible endless additional sales by being in the top 10 of a particular search with a chance to sell...or better yet;
A typical business doing $100,000 a year, netting $30,000 a year after all fees/costs/taxes etc.) and a "typical" 2% 'returns ($2,000) versus
figuring 10% of that $100,000 comes from Promotions ($10,000) with a net of $3000 in pocket
So, to cut off $10,000 in sales, $3000 in pocket- to 'save' $40 (I use 2% promo, refunding $2,000) does NOT make much financial sense and does NOT appear to be a very wise business model.